It is important when starting the home-buying process in Canada to understand how immigration status is viewed by lending institutions.

Landed Immigrant: A new immigrant who has received the official stamp on their immigration papers, confirming the landed immigrant status in Canada.

Non-Landed Immigrant: Live and work in Canada, but have not yet obtained landed status.

The qualification process for each of the above varies by lending institution. Here are a few examples.

Some lenders require full Landed Immigration status, an established relationship with a bank, good net worth and credit history.  And often, confirmation of job stability of a year or more in Canada.  These lenders are willing to finance 65-90 per cent of the property value, depending on the application and will require proof of documentation at the time of the pre-approval.

In lieu of credit reports, sometimes unattainable from foreign countries, a reference letter from the bank most recently used may be requested.  Income sources will also be verified, and there are stipulations for minimum annual amounts and tenure.

However, there are lenders who will consider the Non Landed Immigrant status for those who live and work in Canada, but have not yet received their papers.  (in most cases, an application for landed immigrant status is pending).  What holds the most weight in this mortgage situation is the borrower’s job stability and good credit in Canada.  If the borrower meets these requirements, 100 per cent financing is available!!  In addition, there is the “self-declared” income product, where no credit exists, non-landed status.  The down payment requirement will vary, but if income is difficult to prove, this might be the mortgage for you.

As with all mortgage applicants, it’s important to have good representation from a qualified mortgage professional when approaching the different lending institutions to ensure the full picture is understood.  NL